Article Originally Posted By AZBigMedia On October 7, 2021
With unprecedented labor and construction supplies shortages standing in the way, you would think new home construction is stagnant. In fact, according to data collected by Omnis Panels over the past two years, it’s on the rise from coast to coast. In Metro Phoenix, single-family home construction jumped 42% between June 2020 and June 2021. Tucson saw an even bigger increase, with single-family home construction jumping 46% between June 2020 and June 2021.
Each month, the U.S. Census Bureau and the U.S. Department of Housing and Urban Development release data reflecting trends in new residential construction. One of the leading indicators of construction trends is how many building permits are issued for new projects. Recently, we analyzed the data from 368 permit-issuing municipalities across the country, to understand new construction trends at both the national and local levels.
For each municipality, we focused our analysis on two periods: the number of permits issued in the first six months of 2020 and the number of permits issued in the first six months of 2021.
The national numbers show an undeniable boom in new residential construction. Over the past two years, permits issued increased 36 percent nationally, for all sized residential projects. For single-family homes, the increase was 30 percent. For large buildings containing five or more units, the increase was 21 percent. Also during this period, the average value of a newly constructed single-family home increased seven percent.